• EUR/AUD steadied on Monday as Australian dollar was weighed down after China's disappointing rate cut.
• China cut its one-year benchmark lending rate by 10 basis points (bp) and left its five-year rate unchanged, against economists' expectations for larger 15 bp cuts to both.
• At GMT 16:33, the pair was trading up 0.17 percent at 1.7017,after reaching daily high 1.7069
• From a technical viewpoint, RSI is strongly bullish at 68, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.7015(23.6% fib), any close above will push the pair towards 1.7064(Daily high).
• Immediate support is seen at 1.6890(5DMA) and break below could take the pair towards 1.6822(38.2% fib).
Recommendation: Good to buy on dips around 1.6990, with stop loss of 1.6800 , and target price of 1.7090
